OICCI calls for predictable tax regime to spur foreign investment

The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the government to introduce a stable, predictable and medium-term tax policy framework, warning that frequent changes in tax measures and delays in refund settlements are eroding investor confidence and raising the cost of doing business in Pakistan.

The call came during an interactive session between OICCI members and Dr. Najeeb Memon, Director General of the Tax Policy Office (TPO), Finance Division, where foreign investors flagged systemic and structural tax challenges as a key barrier to fresh investment and long-term planning.

While acknowledging recent progress on macroeconomic stabilization, OICCI members stressed that sustained foreign direct investment (FDI) inflows depend on consistency, transparency and credibility in tax policymaking. They highlighted prolonged delays in tax refunds, policy uncertainty and frequent changes in tax measures as persistent pain points that require urgent policy-level intervention.

Yousaf Hussain, the OICCI president, said that the real test of proposed tax reforms lies in their impact on predictability and stakeholder engagement.

“Businesses plan over long horizons. Frequent changes, unclear interpretations and retrospective measures undermine confidence and increase the cost of capital,” he said, calling for a consultative, well-signaled tax framework focused on broadening the tax base, simplifying compliance and aligning taxation with national priorities such as investment, exports and job creation.

Echoing these concerns, OICCI Secretary General M. Abdul Aleem said foreign investors are now looking beyond short-term economic stabilization towards deeper structural reforms.

“A predictable tax regime, timely settlement of refunds and consistent implementation of policies are essential to improving Pakistan’s competitiveness as an investment destination,” he said.

Responding to investor concerns, Dr. Memon said the government values evidence-based input from the private sector and acknowledged the importance of stakeholder engagement in shaping effective tax policy. He said feedback from OICCI would be considered as the Tax Policy Office works towards a more coherent and growth-oriented tax framework.

The session concluded with both sides agreeing to maintain regular engagement, with the shared objective of improving predictability, consistency and investor confidence in Pakistan’s tax system — a move business leaders say is critical for reviving FDI at a time when the country is seeking to strengthen its external accounts and sustain economic recovery.